As more exchange traded funds come to market, investors are given greater choices to customize their investment portfolio and trade in the way they are most comfortable.
For example, State Street Global Advisors recently made some major changes to four of its ETFs, including:
- SPDR Portfolio S&P 1500 Composite Stock Market ETF (NYSEArca: SPTM), which tracks the S&P Composite 1500 Index and has a 0.03% expense ratio
- SPDR Portfolio S&P 500 ETF (NYSEArca: SPLG), which tracks the S&P 500 Index and has a 0.03% expense ratio
- SPDR Portfolio S&P 400 Mid Cap ETF (NYSEArca: SPMD), which tracks the S&P MidCap 400 Index and has a 0.05% expense ratio
- SPDR Portfolio S&P 600 Small Cap ETF (NYSEArca: SPSM), which tracks the S&P SmallCap 600 Index and has a 0.05% expense ratio
“We basically have, you know, investor choice within our lineup on how you want to invest in the S&P 500. You obviously have something like SPY, which is, you know, probably more attractive for active – the institutional durability with high NAV, robust liquidity, and deep optionality and that implementation flexibility. But then, for SPLG, has a lower share price and a lower expense ratio, and that’s catered to those investors that place more emphasis from a total cost of ownership perspective on the fees,” Matthew Bartolini, Head of SPDR Americas Research, State Street Global Advisors, said at the Inside ETFs conference.
The index changes help demand a more simply arranged ETF investment tool option that provides exposure to targeted US equity markets in a cost-effective way. The index changes seek to respond to demand and to provide a more stratified ETF toolkit that targets segments of the US equity market cost-effectively. For investors who prefer broad market exposure, the newly positioned funds include the only ETF currently available tracking the S&P Composite 1500 Index.
Watch Matthew Bartolini Talk Investor Choices:
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